Question

Erik took out a loan for $8400 for 6 years at a compound interest rate of 5.5%-

How much interest does Erik owe from the loan?
$11,582.28
$108,084.86
$2,772
$3,182.28

Answer 1

Answer:The answer is actually 3,182.28

Explanation:

Answer 2

$2772

Explanation:

Given data

Principal= $8400

Rate= 5.5%

Time= 6 years

The expression for the simple interest on the loan is found using the expression below

SI= PRT/100

substitute

SI= 8400*5.5*6/100

SI= 277200/100

SI= $2772

Hence the simple interest is $2772